The African Development Bank (AfDB) will lend Nigeria $500 million this year as part of a $1 billion budget support programme, following economic reforms introduced by President Bola Tinubu, an executive director of the bank said on Monday.

Bode Oyetunde, who represents Nigeria and São Tomé and Príncipe on the AfDB board, said the loan could be approved before year-end.

"We have been working strongly to support Nigeria's very bold and aggressive macroeconomic reforms under President Tinubu. Given all these reforms, it was important to support Nigeria," Oyetunde told Reuters on the sidelines of the Nigerian Economic Summit in Abuja.

"They asked us for $1.5 billion. We are able to do $1 billion over two years. Last year, we provided $500 million in budget support. This year, we are looking to do another $500 million, subject to board approval."

Bold reforms

The West African nation, Africa's most populous, has embarked on a bold transformation since Tinubu took office in May 2023.

His government has removed fuel subsidies, unified foreign exchange rates, and launched tax reforms aimed at stabilising public finances and attracting investment.

Oyetunde added that the bank is focusing on fiscal and power sector reforms as part of its support programme.